Does a rigid payroll cycle meet the needs of a flexible workforce in promoting Financial Wellbeing
In a world of ever evolving technical advancement, it could be said that payroll has been somewhat slow in adopting the on-demand needs of the increasingly tech-savvy workforce.
The new generation of cloud payroll solutions allow business to process payroll on-demand and get real time results; and whilst the interactive online payslip has been with us for the last decade and a half, employees are still typically governed by rigid pay cycles and methods of payment as defined by their employer.
There are many benefits to organisations having a structured pay routine – operational efficiency, cash flow management, reconciliation and financial accounting processes to name a few. But, from an employee perspective, they may well feel inflexible and out dated, especially when compared with their experiences as consumers of banking services, which support concepts like faster payments and paying a friend back for lunch just by knowing their mobile phone number.
Evolving workforce
Employment norms are also changing; the gig economy is thriving, with a booming freelance workforce, a ‘job for life’ being very much a thing of the past, and the trend for people having numerous jobs with multiple employers on an upward trajectory. Couple this with the emergence of Generation K (16-24-year olds), who have grown up with a smartphone in their hands, have an inherent distrust of establishment institutions, a perception of social inequality and a distinct lack of financial optimism, and we have a catalyst for major change in the world of pay.
Some of the most successful organisations thriving in the gig economy are leading the way and doing it differently.Take Uber for example, they give their drivers access to Uber Instant Pay, where drivers can “cash out” their available earnings up to 5 times a day. Now, whilst that may not make sense for all businesses, it certainly shows the sort of payment flexibility that we can expect our employees of the future to be asking us for.
Financial wellbeing
Financial wellness is also a hot topic across all worker types and generations, with many employers now looking to better support employees in this area. Money worries are often cited the biggest cause of stress, with 1 in 4 workers saying they have lost sleep over them, and 55% of British families saying they would struggle to pay an unforeseen bill of £250 just before pay day. It’s understandable therefore, that employees are demanding more control, greater flexibility and better access to their finances.
89% of employers agree, saying that financial concerns have a negative impact on employee performance, so the ability to offer innovative solutions that help put people in control of their own financial management and alleviate some of the burden many face today can only be a good thing.
As a leader in the payroll market, SD Worx understands the importance of paying people correctly, first time, every time, however we also understand it’s just as important for employers to be able to meet the changing expectations of their employees, which is why we are investing in a range of innovative solutions to help businesses better respond to the changing needs of the workforce.
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